Switzerland Imposes Restrictions on EU Workers, Targets Eastern European Countries

Aug. 22, 2012 - PRLog -- (Sunnyvale, CA)- Switzerland has temporarily re-introduced authorization requirements for workers coming into the country from the eight Eastern European countries that joined the European Union (EU) in 2004—commonly referred to as the EU-8.

As per the new restrictions that took effect on May 1, 2012, nationals from the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia now have to seek work authorization in Switzerland.

Switzerland, which first opened its markets to the EU-8 in May 2011, imposed the latest restrictions by using a "safeguard clause"(“Ventilklausel”) in its freedom of movement agreement with the EU. The clause allows Switzerland to unilaterally re-introduce work permit quotas for EU-8 countries up until the year 2014.

As a result, category B residence permits are subject to quotas. The new restrictions are applicable for one year and apply to all EU-8 citizens that come to Switzerland to be self-employed or who have employment contracts in Switzerland valid for one year of more.

Switzerland Work Permits: Useful Information
B Residence Permit for EU/EFTA (European Free Trade Association) nationals:

In Switzerland, foreign nationals who live in Switzerland for extended periods of time for a specific purpose —with or without gainful employment— are termed as resident foreign nationals.

The B Residence Permit is issued to foreign nationals that are under employment contracts with Switzerland-based companies for at least 12 months. For EU/EFTA nationals, this type of Switzerland work permit is valid for five years and is available to all nationals without gainful employment as well, as long as they prove availability of sufficient financial means and adequate health and accident insurance.

For nationals from Bulgaria and Romania, commonly referred to as the EU-2, additional temporary regulations apply.

This resident permit can be renewed for another five year term upon completion of requirement, though first time renewal can be limited to one year if the foreign national has been involuntarily unemployed for more than 12 consecutive months.

B Residence Permit for Non-EU/EFTA (European Free Trade Association) nationals:
For first-time work permits, Switzerland only allows one-year validity for residence permits to third-country nationals. Also, first-time work permits for gainful employment are subject to limits of the ceilings and in compliance with Art.20 of the Aliens Act.

Work permits, once granted, are easily renewed every year unless there are reasons like criminal offences, dependence on social security or the labor market that can lead to a rejection.

For more information on this topic email media@nair-co.com
Get the latest press releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts.